SISU - the Hedge Fund owners of Coventry City are understood not to have paid the last installment on the rent they pay to use the facilities at the Ricoh Arena.
A payment of around £100k has not been paid and it is being seen as a tool to lever talks about the £1.4m rent which ACL charges the club annually, a tactic used by other clubs such as Peterborough United and Ipswich Town.
Council leader John Mutton said to the CT: "I don’t think the future looks very promising for the football club.
"I haven’t really got details I can go in to, but if there has been a default, I think Arena Coventry Ltd will do what we would do with any other business in a similar position. That is issue a notice and demand payment."